1. Chapter Eight
Improving Performance with Feedback, Rewards, and Positive Reinforcement
McGraw-Hill/Irwin
Copyright © 2010 The McGraw-Hill Companies, Inc. All rights reserved.

2. After reading the material in this chapter, you should be able to:
Specify the two basic functions of feedback and three sources of feedback.
Define upward feedback and 360-degree feedback, and summarize the general tips for giving good feedback.
Distinguish between extrinsic and intrinsic rewards, and give a job-related example of each

3. After reading the material in this chapter, you should be able to:
Summarize the research lessons about pay for performance, and explain why rewards often fail to motivate employees.
State Thorndike’s “law of effect” and explain Skinner’s distinction between respondent and operant behavior.
Demonstrate your knowledge of positive reinforcement, negative reinforcement, punishment, and extinction and explain behavior shaping

4. Improving Individual Job Performance
Figure 8-1

5. Providing Effective Feedback
objective information about individual or collective performance shared with those in a position to improve the situation

6. Two Functions of Feedback
Instructional
clarifies roles or teaches new behaviors
Motivational
serves as a reward or promise of a reward
Can be significantly enhanced by pairing specific, challenging goals with specific feedback about results

7. Question?
Grant is responsible for training new employees. He wants to make sure everyone knows their role in making the firm successful. This is __________ feedback.
Persistent
Motivational
Tutorial
Instructional
The correct answer is “D” – instructional. See previous slide.

8. Sources of Feedback Others Task Oneself
peers, supervisors, lower-level employees, and outsiders
Task
Oneself
Self-serving bias and other perceptual problems can contaminate this source

9. Behavioral Outcomes of Feedback
Direction
Effort
Persistence
Resistance

10. Nontraditional Feedback
Upward feedback
employees evaluate their boss
360-Degree feedback
comparison of anonymous feedback from one’s superior, subordinates, and peers with self-perceptions
Typically involve multiple sources of feedback

11. Question?
When Janine evaluates her supervisor, she is providing __________ feedback.
Upward
Downward
Horizontal
Diagonal
The correct answer is “A” – upward feedback
AACSB:  Communication; Group-individual dynamics
Bloom's Taxonomy:  Comprehension Difficulty:  Easy Page:  205

12. Popularity of Nontraditional Feedback
Traditional performance appraisal systems have created widespread dissatisfaction.
Team-based organization structures are replacing traditional hierarchies.
Multiple-rater systems are said to make feedback more valid than single-source feedback.

13. Popularity of Nontraditional Feedback
Advanced computer network technology greatly facilitates multiple-rater systems.
Bottom-up feedback meshes nicely with the trend toward participative management and employee empowerment.
Co-workers and lower-level employees are said to know more about a manager’s strengths and limitations.

14. Upward Feedback
Managers resist upward feedbacks programs because they believe it erodes their authority
Anonymous upward feedback can become little more than a personality contest
Research evidence on upward and 360-degree feedback favors anonymity and discourages use for pay and promotion decisions

15. Why Feedback Often Fails
Feedback is used to punish, embarrass, or put down employees.
Those receiving the feedback see it as irrelevant to their work.
Feedback information is provided too late to do any good.

16. Why Feedback Often Fails
People receiving feedback believe it relates to matters beyond their control.
Employees complain about wasting too much time collecting and recording feedback data.
Feedback recipients complain about feedback being too complex or difficult to understand.

17. Commonsense Guidelines for Feedback
Relate feedback to existing goals and deliver as soon as possible
Be specific and identify observable behavior or measurable results.
Focus feedback on things employees can control

18. Commonsense Guidelines for Feedback (cont.)
Cultivate a fair and constructive climate by including positive feedback
Take time to listen to employees’ reaction

19. Key Factors in Organizational Reward Systems
Figure 8-2

20. Types of Rewards Extrinsic rewards Intrinsic rewards
financial, material, or social rewards from the environment
Intrinsic rewards
self-granted, psychic rewards

21. Question?
Angelo derives pleasure from the task of book writing itself. He can be described as __________ motivated.
Extrinsically
Financially
Materially
Intrinsically
The correct answer is “D” - intrinsically
AACSB:  Group-individual dynamics
Bloom's Taxonomy:  Application Difficulty:  Hard Page:  209

22. Distribution Criteria
Performance: results
tangible outcomes
Performance: actions and behaviors
teamwork, cooperation, risk-taking
Non-performance considerations
contractual

23. Pay for Performance Pay for performance
monetary incentives tied to one’s results or accomplishments

24. Why Rewards Fail to Motivate
Too much emphasis on monetary rewards
Rewards lack an “appreciation effect”
Extensive benefits become entitlements
Counterproductive behavior is rewarded
Too long a delay between performance and rewards

25. Why Rewards Fail to Motivate
Too many one-size-fits-all rewards
Use of one-shot rewards with a short-lived motivational impact
Continued use of demotivating practices such as layoffs, across-the-board raises and cuts, and excessive executive compensation

26. Question?
Kim’s company has given all employees a “performance bonus” each year for the past 17 years. Employees have come to expect it no matter what the company’s profitability. Why would this “pay for performance” system fail to motivate employees?
Too much emphasis on monetary rewards
Rewards lack an “appreciation effect”
Extensive benefits become entitlements
Counterproductive behavior is rewarded
The correct answer is “C” – see slide 8-24

27. Thorndike’s Law of Effect
Behavior with favorable consequences is repeated; behavior with unfavorable consequences disappears
Read an article on the “Law of Effect”

28. Question?
When Grant is praised for a work behavior, he will try hard to repeat it. This follows the law of ___________.
Affect
Effect
Effectiveness
Efficiency
The correct answer is “B” – effect. See previous slide.

29. Positive Reinforcement
Respondent behavior
Skinner’s term for unlearned stimulus-response reflexes
Operant behavior
Skinner’s term for learned, consequence-shaped behavior

30. Contingent Consequences in Operant Conditioning
Figure 8-3

31. Contingent Consequences
Positive reinforcement
making behavior occur more often by contingently presenting something positive
Negative reinforcement
making behavior occur more often by contingently withdrawing something negative

32. Contingent Consequences
Punishment
making behavior occur less often by contingently presenting something negative or withdrawing something positive
Extinction
making behavior occur less often by ignoring or not reinforcing it

33. Schedules of Reinforcement
Continuous reinforcement
reinforcing every instance of a behavior
Intermittent reinforcement
reinforcing some but not all instances of behavior
Continuous reinforcement
reinforcing every instance of a behavior
Intermittent reinforcement – reinforcing some but not all instances of behavior
Fixed ratio
Variable ratio
Fixed interval
Variable interval

34. Schedules of Reinforcement

35. How to Effectively Shape Job Behavior
Accommodate the process of behavioral change.
Define new behavior patterns specifically.
Give individuals feedback on their performance.
Reinforce behavior as quickly as possible.
Use powerful reinforcement.

36. How to Effectively Shape Job Behavior (cont.)
Use a continuous reinforcement schedule.
Use a variable reinforcement schedule for maintenance.
Reward teamwork—not competition.
Make all rewards contingent on performance.
Never take good performance for granted.

37. Shaping Behavior Shaping
reinforcing closer and closer approximations to a target behavior

38. Question?
Employees at ABC Manufacturing strive to operate at a zero-defect level because each gets publicly recognized for their individual and team accomplishments. This is an example of
Extinction.
Positive reinforcement.
Respondent behavior.
Punishment.
The correct answer is “B” – positive reinforcement
AACSB:  Group-individual dynamics Bloom's Taxonomy:  Application
Difficulty:  Medium Page:  213

39. Supplemental Slides
Slides contain extra non-text examples to integrate and enhance instructor lectures
Slide 40-41: Yearly Reviews
Slides 42-43: Fear of Feedback
Slide 44: Receiving Feedback
Slide 45: Video discussion slide

40. Yearly Reviews
Why don’t managers and employees like performance reviews?
Where you work or have worked, how often did you receive feedback?
Discussion question:
Why don’t managers and employees like performance reviews?
Have students discuss reasons these reviews are uncomfortable.
Reasons that may be suggested:
Hurt feelings
Nervous; surprised by feedback
Level of formality and seriousness especially when attached to merit raises or bonuses
Where you work or have worked, how often did you receive feedback?
Yearly, twice a year, quarterly are common responses
Discuss whether the regularity of the feedback affects the discomfort or anxiety associated with the performance review meeting.
Use these answers as a segue into the next slides on feedback

41. Source: Ideas The Welch Way, BusinessWeek, February 26, 2007
Yearly Reviews
Jack and Suzy Welch’s advice:
Sit down with each direct report and provide a single page that says, here’s what you do well, and here’s what you can do better
This should happen three or four times a year, particularly with every raise, bonus, or promotion
What are the pros and cons of this approach?
Source: Ideas The Welch Way, BusinessWeek, February 26, 2007
Jack and Suzy Welch respond to a reader asking why we can’t just let employees know when they are performing way under or way beyond expectations because it would save a lot of time.
Jack and Suzy Welch’s advice:
Sit down with each direct report and provide a single page that says, here’s what you do well, and here’s what you can do better
This should happen three or four times a year, particularly with every raise, bonus, or promotion
What are the pros and cons of this approach?
May want to discuss the heightened sensitivity when pairing feedback with tangible rewards. Employee may be overly defensive or closed to negative feedback and supervisors may soft-pedal because they know their ratings have real consequences for the employee.
A regular coaching model may be a solution so employees get the feedback they need in time to make real improvements that impact their promotability and salary.
Source: Ideas The Welch Way, BusinessWeek, February 26, 2007

42. Fear of Feedback Maladaptive Behaviors Procrastination Brooding Denial
Jealousy
Self-sabotage
Source: Fear of Feedback, Jackman, J.M., Strober, M.H. (2005) Harvard Business Review
Maladaptive behaviors:
Procrastination – not asking when something is wrong, problem tends to fester
Brooding – letting emotions get in the way of action
Denial – staying too long in a job that is a poor fit
Jealousy – comparing yourself to others, letting it demotivate you
Self-sabotage – speaking out of anger rather than dealing with issues then getting into trouble
Adaptive behaviors:
Recognize emotions and maladaptive responses and face them. Figure out why you’re responding that way. Learn to act differently even if emotions are still there
Get Support: friend, colleague, coach
Reframe the feedback: what can you learn from it, take what you own and move on from the rest, consider ways to improve
Break it into parts: work on 1 or 2 things at time
Getting Feedback:
Self-assessment
External – peers, bosses
Absorb the feedback: deal with emotions, watch for maladaptive behaviors
Take action: coming to a conclusion and acting on it
Source: Fear of Feedback, Jackman, J.M., Strober, M.H. (2005) Harvard Business Review

43. Fear of Feedback Adaptive Behaviors
Recognize emotions and maladaptive responses
Get support
Reframe the feedback
Break it into parts
Source: Fear of Feedback, Jackman, J.M., Strober, M.H. (2005) Harvard Business Review
This article describes the cognitive and behavioral processes that occur when receiving feedback. Each process is described and strategies for mitigating these effects is provided.
Adaptive behaviors:
Recognize emotions and maladaptive responses and face them. Figure out why you’re responding that way. Learn to act differently even if emotions are still there
Get Support: friend, colleague, coach
Reframe the feedback: what can you learn from it, take what you own and move on from the rest, consider ways to improve
Break it into parts: work on 1 or 2 things at time
Getting Feedback:
Self-assessment
External – peers, bosses
Absorb the feedback: deal with emotions, watch for maladaptive behaviors
Take action: coming to a conclusion and acting on it
Source: Fear of Feedback, Jackman, J.M., Strober, M.H. (2005) Harvard Business Review

44. Receiving Feedback To help clarify feedback, receivers can ask:
Could you give me an example of the behavior that concerns you?
Can you help me understand how you came to that conclusion?
Can you help me understand the situations in which you have seen the behavior and what you see as the impact?
Can you clarify what you would like to see me do differently?
Taken from Academy of Management Executive 2005 Vol 19 No. 2 May, pg Actionable feedback: Unlocking the power of learning and performance improvement.
For feedback to be useful it should be actionable and accurate. Often the receiver of feedback doesn’t understand explicitly what the feedback giver is saying and how they came to their perceptions of performance. Instead of feeling confused, receivers can ask the following questions to clarify the feedback:
Could you give me an example of the behavior that concerns you?
Can you help me understand how you came to that conclusion?
Can you help me understand the situations in which you have seen the behavior and what you see as the impact?
Can you clarify what you would like to see me do differently?

45. Video Case: Slacking Off
This questions is almost impossible to universally answer. The answer will be directly tied to one’s view of work as well as their generation. One has to consider that we have a knowledge based economy today and there is often times no tangible product of our work. People from the days of a manufacturing economy may just not be able to recognize the products of a knowledge worker as being productivity.
One could argue that more is expected of workers today given that technology can serve as an electronic leash for some people. As mentioned in the case, people allow their social life to bleed into their work life and their work life to bleed into their home life. In the past, when the worker left work, they were done for the day.
The question concerning whether or not we are less productive today is also difficult to answer. This may also be the product of one’s vantage point (i.e. what generation they belong to).
Work today is very different than it was in the past. As previously mentioned, we are working in a knowledge based economy that has different products of “labor” than did a manufacturing economy. This could certainly be part of the issue as was previously mentioned.
Are workers from today’s generations exhibiting a “slacker” attitude at work?
Do you think more is being expected of workers today than there was in the past?
Are workers today less productive as a result of having “slacker” attitudes?
Is the nature of work different today than it was in the past? Could this be part of the issue?